San Antonio’s Andeavor Logistics buys pipeline for $180 million

Published 4:21 pm, Friday, February 16, 2018

San Antonio-based Andeavor Logistics is planning to build new natural gas liquids pipelines in North Dakota’s Bakken shale oil field.

San Antonio-based Andeavor Logistics is planning to build new natural gas liquids pipelines in North Dakota’s Bakken shale oil field.

Photo: John Davenport /San Antonio Express-News

San Antonio’s Andeavor Logistics buys pipeline for $180 million

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San Antonio-based pipeline and storage company Andeavor Logistics announced Thursday it has purchased a nearly 600 mile-long pipeline system for $180 million.

Andeavor Logistics said it bought the 575 mile Wamsutter Pipeline System from Plains All American Pipeline, the company disclosed in its fourth quarter 2017 earnings release Thursday. The company said the pipeline system serves the Salt Lake City refinery market, including Andeavor’s Salt Lake City refinery.

Andeavor Logistics is also planning to spend upwards of $150 million to build and operate a natural gas liquids transport and storage system called the North Dakota Logistics Hub. The project would tap into North Dakota’s Bakken shale oil field and Andeavor Logistics plans for the system to be completed by the first quarter of 2019.

Natural gas liquids include propane, butane and ethane, which is used in plastics production and as a petrochemical feedstock.

Two other projects worth up to $30 million are being planned in West Texas’ Delaware Basin, which is part of the larger Permian Basin oil field. The crude oil gathering systems would be supported by acreage dedications of approximately 40,000 acres.